Mold damage not covered by home insurance

People with home insurance should keep in mind that their policies do not cover every type of damage.

Recently, an article from the Orlando Sentinel noted that damage from mold is not covered by most home insurance policies in the state. Rick Combs, vice president for personal lines at Cooper, Simms, Nelson & Mosley in Winter Park, Florida, told the paper that coverage against mold damage requires an addition to a person's policy, which means a second, separate premium.

"Most policies exclude coverage for mold altogether, or they give a token amount, usually $10,000," Combs told the Sentinel. "And it is only covered when the primary cause of the loss from mold is water."

The paper noted that mold can develop in a home in as little as 48 hours. When dealing with mold damage, especially if it is extensive, homeowners are probably going to want to call in professionals, who will have special cleaners and air-filtration equipment.

The Insurance Information Institute has noted that there has been an increase in the number of mold claims filed to insurance companies, which could drive up the price of home insurance.